CUSTOMER RELATIONSHIP
MANAGEMENT PRACTICES AND
PERFORMANCE OF SAFARICOM LIMITED
IN KENYA
CHAPTER ONE
INTRODUCTION
1.1 Background of the Study
The business environment is becoming increasingly competitive and most firms are
devising ways to cope with the rapid changes in the environment such as technology.
One of the aspects that has compelled all these changes is the endless change and
evolution of technology. Customer needs keep on changing and firms have to look for
ways to accommodate these needs. Hunt (2009) indicates that a good customer
relationship management program helps the firm to satisfy customer needs.
Furthermore, Customer Relationship Management (CRM) concept has evolved in
such a way that it must be viewed as a strategy to maintain a long-term relationship
with the customers. Relationship building and management, or what has been labeled
as relationship marketing, is a leading approach to marketing (Kotler, 2005).
The study will be guided by three theories namely Commitment trust theory,
Institutional theory and Knowledge-based view. Commitment trust theory posits that
two important factors, trust and commitment must prevail for the firm to establish a
good relationship with its customers (Hunt, 2009). Institutional Theory holds that
institutionalized symbols define a cultural validation; they include values, meanings
and rules among others (DiMaggio & Powell, 1983). Cognitive firms derive their
authority from a shared conception of social reality for fear of sanctions. Knowledge-
based view focuses on the economic aspects of the operations in the firm. This theory
maintains that both intangible and the tangible resources of the firm are essential
